The FSA has published a paper entitled Islamic Finance in the UK: Regulation and Challenges (the Paper). The Paper sets out how the FSA has dealt with issues relating to Islamic finance using its existing regulatory framework. It also sets out some of the challenges and opportunities specific to Islamic finance. The Paper is set out as follows:
- The Islamic economic model.
- Development of Islamic finance in the UK.
- The FSA’s approach to authorisation.
Risks and challenges.
- Islamic finance in retail markets.
- Islamic finance in wholesale markets.
- Conclusion. Here the FSA states that whilst it cannot promote Islamic finance (or any other particular kind of finance) it can give a clear regulatory framework which is flexible enough to adapt to changes in the market.
View Islamic Finance in the UK: Regulation and Challenges, (PDF 154KB), 28 November 2007